India's international flag carrier, Air India, plans to launch a new discount airline in April 2005 to boost its share of the key Gulf and Southeast Asian markets, its spokesman said on Monday.
Jitender Bhargava said the new airline will be a wholly owned subsidiary of the state-run carrier and would fly from New Delhi, Bombay, Madras and the southern state of Kerala using a fleet of 14 leased Boeing 737-800 planes.
"The aim is to have about 25 percent lower fares than offered by other international airlines," Bhargava said.
India has a large expatriate population working in the Gulf countries and has decade-old ties with Singapore and Hong Kong which drives air travel to the two regions.
The Gulf routes are also some of Air India's most profitable, but the airline faces stiff competition in these markets, especially from discount airline Gulf Traveller launched by Bahrain-based Gulf Air in June 2003.
